Fire Text

1. Start by creating a new image in the grey scale mode. I used the dimensions of 288 x 288 in the example.

Click on the channels palette create a new channel.
By using the Text Tool, type in the text (keep your text color white).

Next, press Ctrl + A, to select the whole image.

2. Next, click on the original channel and drag it to the bottom to duplicate it.

Click on Image > Rotate Canvas > 90° CW. Press Ctrl + D, to deselect everything.

Click on Filter > Stylize > Wind
Choose Blast - From the Left

You can reapply the effect for a higher flame. Pressing Ctrl + F, would allow you to reapply those effects. I used it 3 times for my example.

3. Reselect the whole image by clicking on Ctrl + A.

Rotate your text back to normal Image > Canvas > 90° CCW.

Now, for the smooth flame effect, click on, Filter > Blur > Gaussian Blur.
For the setting of the blur, choose what looks nice on your image, I used 3.0 pixels for my image.

4. For lengthing the flame, click on, Filter > Blur > Motion Blur Set the distance to 20 pixels and the angle to -79.

To add the waviness in your flames click on Filter > Distort > Wave.

Add some texture to the flames by clicking on Filter > Distort > Ocean Ripple. Set the ripple size to 15 and the Ripple Magnitude to 2.

5. We are almost done, now we need to copy the contents from the original layer onto a new layer.

Follow these steps and you wont have to go thru the whole mess. Ctrl + A, Ctrl + C, Ctrl + ~, Ctrl + V. Now click back on the layers palette and merge layer 1 with the background by pressing Ctrl + E.

We now have to colorize the whole image.
Click on Image > Mode > Indexed Color.

Next click on Image > Mode > Color Table and choose Black Body. Next switch back to RGB Mode by going Image > Mode > RGB Color.

6. Now go back on the channel palette and Ctrl + Click on the original layer. Then go back to the layer palette and create a new layer. Fill the whole thing with black color.

You should have something that looks like the image on the left. You might have something close to it.

7. And as for the last step, add some inner glow to the image, this will make the fire look smoother and realistic.

Go on the Blending Options and use these settings
Blend Mode: Normal
Choke: 12
Size: 5

Now click on the main layer and click on, Image > Adjust > Hue/Saturation.

And for the last effect, click on, Image > Adjust > Curves